Dino Dello Sbarba: The dairy industry is quite vibrant and we at Saputo view it with optimism. With an average world per person dairy consumption of 104 litres of milk and milk equivalents, and a per person consumption of over 200 litres in countries where there is a dairy heritage, dairy products and their contribution to a healthy diet continue to be recognised.
In the rest of the world, the dairy industry is promoting and establishing dairy products and dairy ingredients as good sources of protein. As such, consumption is evolving in line with the occurrence of wealth. The worldwide trade of dairy products is increasing in order to bring these products to fill the gaps in new consuming countries, while infrastructure is developing to serve increasing demand.
Technology at the producer and processor levels brings new efficiencies and innovation to the supply chain, and not a single day goes by where we don’t hear of investments by the industry. I also feel that the industry is acting responsibly in addressing sustainability issues.
Dino Dello Sbarba: Saputo is a dairy processor first and foremost. Our mission consists of sourcing quality milk at competitive prices, processing it and adding value in order to provide safe and nutritious dairy products of the utmost quality.
We serve the needs of the domestic markets where we operate firstly, and supply the international markets. We are currently ranked as the ninth largest dairy processor in the world, the largest in Canada, the third largest in Argentina and among the top three cheese producers in the US. We operate 53 manufacturing facilities in three countries – Canada, the US and Argentina – and employ 12,000 people. Our products are sold in more than 40 countries under well-known brand names.
Dino Dello Sbarba: I don’t feel there is a simple answer to this question. For example, Saputo serves a wide variety of consumers with many different needs. In countries where people enjoy a long history of dairy product consumption, consumers are looking for good value, healthy and nutritious products, convenient packaging and formats, and in many cases, consumers simply want to indulge so they’re looking for a tasty experience.
In other markets, where consumers may just be discovering dairy, they may be looking for affordable nutrition, convenience and new experience. As an example, in countries where the refrigerated supply chain is not yet well established, consumers will value UHT milk over fresh HTST milk which is reversed in North America.
What is certainly true in each market is that food safety, value of the experience and nutrition are key elements in ensuring the growth and sustainability of the dairy industry.
Dino Dello Sbarba: Saputo constantly reviews and reinforces its approach towards food safety, innovation and efficiency. Furthermore, we continuously analyse market trends to ensure we remain competitive and bring products to the market that satisfy consumer and customer needs.
Dino Dello Sbarba: We have many innovations to be proud of. In terms of technology, some of our latest innovations have enabled us to add value to dairy components, to be more efficient and to provide increased product functionality. As for consumer innovation, many of our findings have enabled the development of new products for the market.
Because we operate in many markets, we are conscious that one country’s innovative product may be a staple product in another market. One example that comes to mind is the launch of our resealable package of shredded cheese in Argentina last year. Such a feature did not yet exist in the Argentinean market but has been available for many years in North America.
In Canada, we have recently launched a protein enhanced sports recovery beverage under our Milk2Go brand of single-serve flavoured milks. Known as Milk2Go Sport, it contains 26g of protein, is currently being launched across Canada and is supported by an extensive media campaign.
Dino Dello Sbarba: As is the case with many innovations, there is extensive market and consumer research that is required before launching a new product. Every aspect must be carefully evaluated … be it the consumer benefits, the market size, long-term viability of the product, processing investment needs, recipe development, regulatory requirements, and so on and so forth. In the case of Milk2Go Sport specifically, it took a little over a year, from the product’s conception to being available in stores.
Dino Dello Sbarba: It is always interesting to connect with your peers in the industry; to have an opportunity to better understand the dynamics of the market and the specific challenges and opportunities in every part of the world. The World Dairy Summit is a great opportunity to discuss the evolution of trade policies between countries.
One needs to always stay connected with the industry in order to be able to make the right decisions for their respective business.
Dino Dello Sbarba: The dairy industry will grow, international trade will increase, and efficient producers and processors will thrive in this environment. Consumers will benefit from technological advancements and, one thing is for certain … we will all be 10 years older!
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